01/10/2012

Gastaldy highlighted that throughout the consolidation seen since early August, the index has been subject to bullish pressure, with its troughs getting steadily higher.

We are on the verge of a breakout, Valerie Gastaldy, general manager of Paris-based Technical analysis firm Day by Day, said of the index, which has been stuck within a relatively narrow 200-point range over the past couple of months.

From a technical perspective, the prospects for the FTSE 100 are positive.

The FTSE 100 closed up 64.93 points, or 1.1 percent, at 5,870.54, adding to the previous session's 0.2 percent gain.

From a technical perspective, the prospects for the FTSE 100 are positive.

"We are on the verge of a breakout," Valerie Gastaldy, general manager of Paris-based technical analysis firm Day by Day, said of the index, which has been stuck within a relatively narrow 200-point range over the past couple of months.

Gastaldy highlighted that throughout the consolidation seen since early August, the index has been subject to bullish pressure, with its troughs getting steadily higher.

"If we break above 5,932 (the Sept 14 high), that would be a clear signal - that would really confirm that the market is going to accelerate... and within a couple of days we'll be up at 6,100 (the 2011 high)."

"We've had consolidation, and it's a strong base for the market to start growing again in the coming days," said Valerie Gastaldy, technical strategist at Day By Day, highlighting 2,580 as the next key resistance level on the upside.